CEO Jim Keyes has led Blockbuster down an unprofitable road, doomed it for bankrupycy, and is sealing its fate.
Blockbuster is receiving a ton of competition from Netflix, Redbox, and cable providers that is driving them out of business. They are currently closing stores throughout the entire nation, up to 22% of its store base. Blockbuster recently stated that they will be closing another 1,000 stores by the end of 2010. They are losing the DVD rental industry to their competitors because they are falling behind the technology. This is not due to lack of ideas, it is because Blockbuster's CEO Jim Keyes is selfishly holding the once movie rental kingpin back.
An entrepreneur named Greg Meyer wrote Blockbuster's management in 2005 offering a brilliant idea. He thought the stores could profit by putting kiosks outside of the stores. This would have increased profits by allowing blockbuster stores to rent DVDs 24 hours a day. Furthermore, closing stores for the slowest three hours each day would have saved $140 million in operating costs. Most importantly, if Blockbuster had used this idea they would have beaten Redbox to the innovative idea and claimed control over this market.
Jim Keyes foolishness does not stop there. After Meyer bought out 650,000 Blockbuster shares and launched efforts to be granted a seat on the board of directors, he made yet another suggestion. Meyer suggested running ads promoting Blockbuster's ability to offer new releases 28 days before both of its leading competitors. He believes that Blockbuster can hold on to many of its remaining stores, offer kiosks, and run an online subscription service. These efforts will pull Blockbuster from the shadows of the rental industry into the limelight.
Jim Keyes denied Greg Meyer a seat on the board and despite Blockbuster's 2009 $500 million loss, took home 1.5 million in discretionary bonuses. In my opinion Jim Keyes does not have Blockbuster's best interest in mind. Someone as committed and innovative as Greg Meyer should be leading Blockbuster to success.
Kapnek J
CEO Jim Keyes has led Blockbuster down an unprofitable road, doomed it for bankrupycy, and is sealing its fate.
Blockbuster is receiving a ton of competition from Netflix, Redbox, and cable providers that is driving them out of business. They are currently closing stores throughout the entire nation, up to 22% of its store base. Blockbuster recently stated that they will be closing another 1,000 stores by the end of 2010. They are losing the DVD rental industry to their competitors because they are falling behind the technology. This is not due to lack of ideas, it is because Blockbuster's CEO Jim Keyes is selfishly holding the once movie rental kingpin back.
An entrepreneur named Greg Meyer wrote Blockbuster's management in 2005 offering a brilliant idea. He thought the stores could profit by putting kiosks outside of the stores. This would have increased profits by allowing blockbuster stores to rent DVDs 24 hours a day. Furthermore, closing stores for the slowest three hours each day would have saved $140 million in operating costs. Most importantly, if Blockbuster had used this idea they would have beaten Redbox to the innovative idea and claimed control over this market.
Jim Keyes foolishness does not stop there. After Meyer bought out 650,000 Blockbuster shares and launched efforts to be granted a seat on the board of directors, he made yet another suggestion. Meyer suggested running ads promoting Blockbuster's ability to offer new releases 28 days before both of its leading competitors. He believes that Blockbuster can hold on to many of its remaining stores, offer kiosks, and run an online subscription service. These efforts will pull Blockbuster from the shadows of the rental industry into the limelight.
Jim Keyes denied Greg Meyer a seat on the board and despite Blockbuster's 2009 $500 million loss, took home 1.5 million in discretionary bonuses. In my opinion Jim Keyes does not have Blockbuster's best interest in mind. Someone as committed and innovative as Greg Meyer should be leading Blockbuster to success.
Some links to articles on Blockbuster and its homepage:
Can Blockbuster Be Saved?
Blocbuster Closing Up To 960 Stores Through 2010
Blockbuster Homepage